Prime Minister Mark Carney denies pursuing China free trade deal amid tariff threats

Canadian Prime Minister Mark Carney said his government has no plans to pursue a free trade agreement with China.

His comments come amid a trade spat with President Donald Trump, who has threatened a 100% trade increase against Canada if it goes ahead with an ongoing trade deal with Beijing. Carney said the trade agreement is only about reducing tariffs.

“We have no intention of doing this with China or any other non-market economy,” Carney said of a broader trade deal. “What we have done with China is to correct some of the issues that have developed in the last two years.”

However, Trump seemed unconvinced over the weekend, claiming on social media that China was “taking over” America’s neighbour.

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“China has successfully and completely taken over the great nation of Canada. Very sad to see this happen. I only hope they leave ice hockey alone,” Trump wrote on his Truth Social platform on Sunday.

However, Carney stressed that there are already trade agreements with the United States and Mexico that prevent any of the three countries from entering into a trade agreement with a non-market economy without prior notice.

Treasury Secretary Scott Besent criticized Carney’s openness toward China during an appearance on ABC News’ “This Week” on Sunday. He said Carney was helping the Chinese “pump their cheap goods into the United States.”

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Scott Besant speaks during a press conference outside the US headquarters at the annual meeting of the World Economic Forum (WEF) in Davos on January 19, 2026. (Fabrice Coffrini/AFP via Getty Images/Getty Images)

“We have the (United States-Mexico-Canada Agreement), but on its basis, which will be renegotiated this summer, and I’m not sure what Prime Minister Carney is doing here, other than trying to virtue signal his globalist friends in Davos,” Besant said.

Carney recently played a ringleader for Western allies who feel threatened by the Trump administration. He sounded a rallying cry for the “middle powers” during his speech at the World Economic Forum in Davos last week.

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“The middle powers must work together because if you are not at the table, you are on the list,” he said in Trump’s presence.

The Associated Press contributed to this report.